Regulation 50 - Management during the process - Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021

CHAPTER X MANAGEMENT OF AFFAIRS OF THE CORPORATE DEBTOR 50. Management during the process. (1) The corporate debtor shall not manage the affairs of the corporate debtor in a manner prejudicial to the creditors of the corporate debtor or in a fraudulent manner. (2) The corporate debtor shall not undertake any of the following actions without obtaining prior approval of the committee, namely:- (a) transaction above a threshold as decided by the committee; and (b) any other matter as decided by the committee and not covered under section 28. (3) The corporate debtor in consultation with the resolution professional shall prepare a monthly report and forward it to the members of the committee with the following details:- (a) details of legal proceedings having a material impact on the business of the corporate debtor; (b) details of key contracts executed during the reporting period; and (c) any other relevant matter(s) that may have a material impact on the business of the corporate debtor. (4) The resolution professional may- (a) call for information related to operations of the corporate debtor, including payments made; (b) visit premise(s) of the corporate debtor; (c) inspect the assets of the corporate debtor; (d) call for information related to compliances applicable to the corporate debtor and its status; (e) ask for details related to litigation initiated by or against corporate debtor; and (f) ask details for ascertaining the conduct of corporate debtor during the process.